1. Angel Group Update: Q1 2012

2. What is the Halo Report™?
Angel Group Investment Trends: The Angel Resource Institute, Silicon Valley
Bank and CB Insights set out to raise awareness of early stage investment
activities by angel investment groups. The Halo Report is the result. The
research series highlights angel investment activity and trends in North America
and provides much sought after data that has not been previously available to
entrepreneurs or early stage investors.
The Halo Report includes aggregate analysis of investment activity by angels and
angel groups and highlights trends in round sizes, location and industry
preferences. The data is collected via survey and aggregation of public data using
CB Insights innovative data analyses.
Get Involved: Angel groups and individual angel investors interested in including
their data in the Halo Report should contact Sarah Dickey, ARI Research
Manager: 913-894-4700 and sdickey@angelcapitalassociation.org.
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3. Angel Group Update Q1 2012: Report Highlights
Valuation of Early Deals p.4 Round Size p.5
The median pre-money The median size of angel & angel
valuation for pre-Series A deals group syndicate rounds remains
by angel groups is $2.5M in the steady at $700k in Q1 2012 when
past 12 months compared to the 2011 median.
Syndication p.7 Spotlight p.14
Angel groups syndicated 75% Most Active Healthcare Angel
of Q1 2012 deals showing an Groups & 1Q 2012 Most Active
increasing trend to co-invest. Groups
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4. First Look: Pre-Money Valuations in Angel Group Deals;
Median of $2.5M over the last 12 months
$4.0M $6.0M
$2.5M
$1.4M
$.56M
1st Median 3rd
Quartile Quartile
*This includes all rounds with angel groups before Series A
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5. Median Angel Round* Size Held Steady at $700K in Q1 2012;
After a 40% increase in 2011 over 2010
$M
1Q $0.70
2012 $0.94
$0.70
2011
$1.06
$0.50
2010
$0.98
$0.00 $0.50 $1.00 $1.50
Median Round Size Mean Round Size
*Angel rounds include angels & angel groups only
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6. Median Round Size is $1.4M when Angel Groups Co-
Invest with Other Types of Investors
Angels with Other Investors
$M
1Q $1.38
2012 $1.95
$1.50
2011
$3.26
$1.95
2010
$3.96
$0.00 $1.00 $2.00 $3.00 $4.00 $5.00
Median Round Size Mean Round Size
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7. Angel Groups’ Co-Invested Deals Increased in Q1 2012
%
100%
80% 74.5%
63.1%
60%
40% 36.9%
25.5%
20%
0%
2011 1Q 2012
Angel Group Co-Investment Not Co-Invested
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8. Angel Group Update Q1 2012: National Activity Snapshot
Note: The following data covering regions and sectors is
based on activity for the past year (2Q 2012 – 1Q 2011 or April
2011 – March 2012) rather than Q1 2012 only, in order to best
demonstrate the angel group activity across the country.
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9. Angel Groups are Active Throughout the U.S.
over the past 12 months
New England
Northwest 14.5%
ALASKA
8.3% New York
6.2%
Great Plains
3.6% Great Lakes
13.8% Mid-Atlantic
9.3%
California
18.8%
Southwest Southeast
11.9% 13.5%
HAWAII
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10. California Companies Received 25% of Total Funding
over the past 12 months
Great Plains
$M Northwest 2.9%
New York 4.9%
6.9% California
Southeast
Mid-Atlantic California
7.6% 25.7% New England
Great Lakes
Southwest Southwest
9.3%
Mid-Atlantic
Southeast
Great Lakes 18.4% New York
12.0%
New Northwest
England
12.3% Great Plains
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11. Internet Sector Dominates Angel Group Deals
over the past 12 months
%
40%
34.9%
35%
30%
25%
21.0%
20%
15% 12.8%
10.8%
10%
7.0%
5.3% 4.6%
5% 3.6%
0%
Internet Healthcare
Mobile & Telecom Industrial
Software (non-internet/mobile) Consumer Products & Services
Energy & Utilities Other
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12. Healthcare Companies Receive the Largest Share of Total Dollars
over the past 12 months
$M
35% 32.7%
30.5%
30%
25%
20%
15% 13.2%
10%
6.8% 5.8% 5.8% 5.1%
5%
0%
Healthcare Internet
Mobile & Telecom Energy & Utilities
Industrial Software (non-internet/mobile)
Other
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13. Spotlight: Healthcare
Most Active Groups in Healthcare Deals over the past 12 months
Pittsburgh, PA
Palo Alto, CA Austin, TX
Columbus, OH
Tucson, AZ
Southern CA
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14. Most Active Angel Groups: Total Deals for Q1 2012
Southern CA Seattle, WA
Boston, MA
Austin, TX Boston, MA
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15. Understanding the Data:
Special Round Types and Industry Sectors
The Halo Report™ is a quarterly report that provides analysis and trends on US angel and
angel group activity.
Angels and angel groups invest alone, together, and with many other types of investors.
Unless otherwise noted the Halo Report data includes all rounds that have at least one angel
group participating and may include other types of investors in those rounds.
This report discusses angel group investments over the past 12 months including 602 deals
and $749.7 M total funding including co-investors.
A few slides report on an “Angel Round,” a special classification of investment for when angel
groups invest alone or just with other angels and angel groups.
Unless otherwise noted, values of less than <1% are included, but are not labeled.
Halo Report Industry Sectors
Internet Industrial Financial Services
Mobile & Telecom Automotive & Transportation Food & Beverages
Software Business Products & Services Leisure
Energy & Utilities Consumer Products & Services Media
Computer Hardware & Services Electronics Metals & Mining
Healthcare Environmental Services & Retail
Equipment Risk & Security
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16. Halo Report Contacts
Angel Resource Institute
Sarah Dickey, sdickey@angelcapitalassociation.org
The Angel Resource Institute (ARI) is a charitable organization devoted to education, mentoring and research in the field of angel
investing, a growing driver of our entrepreneurial economy. ARI was founded by the Ewing Marion Kauffman Foundation. The
programs of ARI include educational workshops and seminars, research projects and reports, and information about angel investing
for the general public. ARI is affiliated with the Angel Capital Association, the professional association of angel groups in North
America. More information is available at www.angelresourceinstitute.org.
Silicon Valley Bank / SVB Accelerator
Carrie Walsh, cwalsh@svb.com
Silicon Valley Bank is the premier bank for technology, life science, cleantech, venture capital, private equity and premium wine
businesses. SVB provides industry knowledge and connections, financing, treasury management, corporate investment and
international banking services to its clients worldwide through 27 U.S. offices and seven international operations. (Nasdaq: SIVB)
www.svb.com.
Silicon Valley Bank is the California bank subsidiary and the commercial banking operation of SVB Financial Group. Banking services
are provided by Silicon Valley Bank, a member of the FDIC and the Federal Reserve System. SVB Financial Group is also a member
of the Federal Reserve System.
CB Insights
Anand Sanwal, asanwal@cbinsights.com
CB Insights is a National Science Foundation-backed data-as-a-service firm that collects information on private companies and their
investors and acquirers. CB Insights data and technology is used by firms to make better marketing, procurement, lending, acquisition
and equity investment decisions and to gather data-driven market and competitive intelligence. The firm's data is regularly cited by
leading media publications including the New York Times, Forbes, BusinessWeek and Fast Company among others. For more
information, visit http://www.cbinsights.com.
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17. ©2012 SVB Financial Group. All rights reserved. SVB>, SVB>Find a way, SVB Financial Group, and Silicon Valley
Bank are registered trademarks.
Angel Resource Institute and CB Insights are independent third parties and are not affiliated with SVB Financial
Group.
This material, including without limitation to the statistical information herein, is provided for informational purposes
only. The material is based in part on information from third-party sources that we believe to be reliable, but which
have not been independently verified by us and for this reason we do not represent that the information is accurate
or complete. The information should not be viewed as tax, investment, legal or other advice nor is it to be relied on
in making an investment or other decision. You should obtain relevant and specific professional advice before
making any investment decision. Nothing relating to the material should be construed as a solicitation, offer or
recommendation to acquire or dispose of any investment or to engage in any other transaction.
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